Through our 'Ask an Expert' service, we have had reports of adjusters denying flood claims on the basis that localized flooding did not cover a surface area of 2 acres/properties as required by the NFIP program. The reality is that the NFIP flood program requires no such thing. First we'll look at one of these questions, then in an article from flood guru David Thompson of Florida, he debunks the myth of the 2 acre/properties rule.

The National Flood Insurance Program (NFIP) is in the process of implementing Congressionally mandated reforms required by the Homeowner Flood Insurance Affordability Act of 2014 that repeal and modify the Biggert-Waters Flood Insurance Reform Act of 2012 (BW-12). Fact sheets on this page provide an overview of the changes to flood insurance rates under the NFIP.

“We have been getting some questions from our insureds about coverage under a Homeowners Policy for exposures that developed after the recent floods. I want to put together an FAQ sheet for our Personal Lines staff, so we will all be on the same page when talking to our insureds. I am attaching some issues and questions we’ve come up with so far. We would appreciate your comments on these technical coverage issues, as well as any additional ideas you have.” – Louisiana agent

Insurance professionals should explain the benefits of insuring to 100 percent of the replacement cost on the RCBAP (as well as all type of policies) covering buildings or personal property. The least expensive choice at the time of application may turn out to be the most expensive choice at the time of loss.

It’s a bizarre statement, but here goes anyway: “Condo unit owners, even those on upper floors, should consider purchasing a dwelling flood policy that includes both contents coverage and building coverage.” Here's why....

An insured wanted to buy a flood policy even though it was not required by the lender. The WYO underwriter said that since the policy was not required by the lender for a loan closing, there was a 30-day wait for coverage to become effective. Is the underwriter correct?

Who exactly must carry flood insurance and what limits must be carried in order to satisfy a lender’s regulatory guidelines? This article addresses the minimums required to satisfy federal lenders' guidelines and also points out that at times the “minimums” are far from adequate to properly cover a flood loss.

In many states, what is covered under an HO-6 and a condo association master policy is governed by state law. That may not be the case when there is a flood claim and federal law pre-empts state law. For example....

Throughout the country, flood maps are changing. For some policyholders this is good news, while for others it can be bad news. As flood maps change, the premiums for flood policies change too. In some cases, a provision referred to as “map grandfathering” can benefit some policyholders and provide them with significant savings on their flood insurance policy. The term “grandfathering” refers to the ability to use a prior map if the premium using the prior map is beneficial to the policyholder.

If a homeowners association (HOA) is not established as a condominium, the Residential Condominium Building Association Policy (RCBAP) can’t be used. This can create several problems, particularly if someone tries to use the RCBAP anyway.

When looking at the National Flood Insurance Program (NFIP), the other structures coverage is so limited that it might almost be thought of as, “There isn’t any.” To adequately protect other structures under the NFIP, a separate policy per building is required.

Over the past few years, eligibility for the PRP has expanded, making a lot more policyholders eligible for the savings under the PRP. It’s in the best interest of the agency to verify that NFIP policyholders who qualify for the PRP are written on that policy instead of on the SFP.

When the tragic floods hit Ron's Cedar Rapids hometown, he sent me two e-mails over a week or so telling about the situation. Those e-mails, totally unedited, are below. It’s a compelling read, especially for those folks who ask, “Why should I buy flood insurance?”